2020-12-31-accounts

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO

(St John the Evangelist with St Andrew)

Diocese of Southwark

Report & Financial Statements

31 December 2020

Registered Charity Number: 1132457

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report and Financial Statements 2020 Contents

	Page
Legal and administrative information	2
Report of the Parochial Church Council	3
Independent Examiner’s report to the Parochial Church Council	13
Statement of financial activities	14
Balance sheet	15
Statement of cash flows	16
Notes to the financial statements	17

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

Name

The Parochial Church Council of the Ecclesiastical Parish of Waterloo

Address St John’s Waterloo, Waterloo Road, London SE1 8TY. The correspondence address is: The Vicarage, 1 Secker Street, London SE1 8UF Charity Registration no 1132457. The church was registered with the Charity Commission on 4 November 2009 The Governing Document Parochial Church Council Powers Measure (1956) as amended and Church Representation Rules.

Members of the PCC

Those who served from 1 January 2020 to the date this report was approved are:

Clergy	The Revd Canon Giles Goddard	Incumbent, Chair
	The Revd Dr Godfrey Kaziro	Hon Assistant Curate
	The Revd Lisa Bewick	Curate
Churchwardens	Belinda Taylor
	Steve Lancashire	Resigned 26 July 2020
	Elaine Thomas	Elected 26 July 2020
Deanery Synod	Eileen Hamilton	Until 26 July 2020
	Leigh Engeham	Until 26 July 2020
	Michael Webb	Until 26 July 2020
	Elizabeth Clarson	From 26 July 2020
	Deborah Watkins	From 26 July 2020
Elected Members	Ben Bailey	Until 26 July 2020
	Rebecca Boardman
	Elizabeth Clarson	Until 26 July 2020
	Declan Dunford-Crozier	From 26 July 2020
	Andrew Humphreys	Treasurer
	Ester Kawoya	Reader
	Terry McLeman
	Mark Ormerod	Secretary until 26 July 2020
	Philippa Owen	From 26 July 2020
	Josephine Ozzy-Momodu	Until 26 July 2020
	Elizabeth Peasley
	Daisy Powell	Until 26 July 2020
	Elizabeth Sengaga
	Ida Serunjogi	Pastoral Assistant
	Joao Simoes Brown
	Nicola Smedley
	Puck Spicer	Until 26 July 2020
	Pat Thomas	Secretary from 26 July 2020

Key Management	Those in charge of directing, controlling, running and operating the Church on a day to day	Those in charge of directing, controlling, running and operating the Church on a day to day	Those in charge of directing, controlling, running and operating the Church on a day to day
Personnel	basis are the enabling committee comprising the incumbent, associate priest/curate,
	churchwardens, secretary, treasurer and sub-committee chairs.
Bankers	CAF Bank Ltd	Independent	John Helm ACA
	5 Kings Hill Avenue	Examiner	Simply Churches Limited
	West Malling ME19 4TA		17 Heathville Road
			London N19 3AL
Solicitors	Winckworth Sherwood	Quinquennial	Roderick Maclennan RIBA AABC
		Inspector

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

The Parochial Church Council of the Ecclesiastical Parish of Waterloo (St John the Evangelist with St Andrew) (“PCC”) submits its report and the financial statements of the PCC for the year ended 31 December 2020. The financial statements have been prepared in the format prescribed by the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP2015) and the Financial Reporting Standard 102. The legal and administrative information set out earlier in this document forms part of this report.

The PCC co-operates with the incumbent, Revd Canon Giles Goddard, in promoting the whole mission of the Church within its Parish and beyond. It also has responsibility for the non-stipendiary staff and the maintenance of the Church buildings. In essence, the PCC is a consultative body that represents the views of the congregation as well as its own. It should communicate, where appropriate, any decisions of the PCC or its committees to the church; oversee and advise in the financial affairs of the church; pray and champion the vision for the church.

1. Structure, governance and management

The PCC is a corporate body established by the Church of England which operates under the Parochial Church Council Powers Measure. The PCC of St John with St Andrew Waterloo was registered with the Charity Commission in November 2009. Within the parish there are two churches: St John the Evangelist, Waterloo Road and St Andrew, Short Street.

The PCC includes representatives from the congregation and the clergy team. It meets on a roughly two-monthly basis, with an average of six meetings per year. This complies with regulations which stipulate that PCCs must meet no fewer than four times a year. The appointment of PCC members is governed by the Church Representation Rules. There is a process in place for the recruitment, induction and training of PCC members, making use of diocesan or deanery training courses when available. The PCC complies with diocesan requirements on safeguarding policies and risk assessment. It also complies with statutory requirements regarding employment, access and health and safety.

The PCC and the incumbent share the responsibility for taking forward the work of the parish. They address issues such as long-term financial planning; quinquennial report and capital spend plans; team ministry issues; annual worship review; annual tithe allocation review; fundraising strategy; managing policies and processes around risk management, safeguarding policies; health and safety; disability discrimination legislation.

1.1 Enabling Committee (Standing Committee)

This is the only sub-committee required by law. It is the leadership team of the PCC and plans the work of the full PCC over the year. It has power to transact the business of the PCC between its meetings, subject to any directions given by the PCC. Its membership comprises the incumbent, associate priest/curate, churchwardens, the PCC secretary and treasurer and sub-committee chairs.

1.2 Church Attendance

The electoral roll is completely reviewed and revised once every six years and has been updated. At the last APCM the electoral roll stood at 116 (2019: 110).

1.3 Risk Management

The PCC acknowledge that they have a responsibility for the identification and proper management of risks faced by the church in achieving its primary aims. The PCC has therefore assessed the major risks to which the church is exposed, in particular, those relating to the specific operational areas of the church, its investments and its finances. The PCC believes that, by monitoring reserves levels, by ensuring that controls exist over key financial systems, and by examining the operational risks faced by the church, it has established effective systems and procedures to mitigate those risks. A comprehensive risk register was undertaken in 2019. A brief summary follows.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

Operational Area	Risk	Management
Security & Safeguarding	There is a major security, safeguarding, or health & safety incident	Safeguarding – there is a safeguarding policy in place and two designated safeguarding officers. All volunteers who have direct contact with children or vulnerable adults as well as Pastoral team members are required to have a DBS, which is renewable every three years; we ensure that insurance policies are up-to-date and cover us for identified risks; wemaintainup-to-dateincidentlogs
Finances	Income and expenditure: there is a risk that expenditure could exceed income	To mitigate these potential risks the PCC has approved an unrestricted funds budget which shows a surplus of income over expenditure. Monthly management accounts are prepared comparing income and expenditure with budget; PCC officials ensure proper authorisation of expenditure in line with the target operational cash reserves of three months’ budgeted expenditure; major expenditure on our St John’s Development Project is contingent on related grant and donation incomefirst being secured
	Potential liabilities: there is an uninsured liability whichcrystallises	To mitigate this potential risk, we ensure that insurance policies are up- to-date and include employer’s liability, public liability, buildings insurance, contentsinsurance andproperty owner’sliability

Clearly, from March 2020, Covid-19 presented as the greatest risk overshadowing all others. The church building has been closed for most of the year and when it was open, government guidelines on health risks, including sign in, mask wearing, sanitising and social distancing were strictly observed and enforced. Whilst the church was closed, we lost most of our rental and lettings income.

A Covid-19 planning working group was set up, recognising that the pandemic could be an existential threat, especially to The Bridge At Waterloo (TBAW), our charitable company which manages our lettings and some of our mission activities, but through that also to the PCC, which benefits from a transfer of 29% of TBAW’s lettings income, so the income and many of our expenses are very closely linked and needed to be monitored and managed with an overview of the whole. The Covid-19 planning working group comprises the Vicar, church wardens, the treasurer and members of the enabling committee and the chair and treasurer of TBAW.

This small group developed a financial model of both PCC and TBAW together, so that the key performance indicators could be monitored and managed very closely. It met online as often as was necessary to monitor developments and to plan the way ahead in light of them – roughly monthly and after every change in the rules. Expenditure was minimised, making full use of furlough and available grants. A review of staffing took place and sadly one redundancy was made.

As a result, we have managed to keep the two entities together surviving and now that we have a roadmap of the easing of lockdown restrictions and a return of rental and lettings income, we can hope to thrive again.

Because of the loss of virtually all of TBAW’s income, it was decided early on by PCC that the loan from 2019 of £45,000 to TBAW should be converted to a gift to keep TBAW solvent. In fact it had always been intended that TBAW should be given its share of the PCC reserves and the gift recognises that and takes the strain off TBAW’s balance sheet.

1.4 Quinquennial inspection. As a result of the extensive planned building works, the Archdeacon advised that the 2020 quinquennial should be postponed until the completion of the redevelopment.

1.5 Terriers – the inventory of the church’s property. These have been fully revised and updated for both St John’s and St Andrew’s. All property is in place and in acceptable condition.

2. Objectives and activities

During the year we continued to advance our plans for a major development of St John’s, branded as the ReIGNITE Project. This will bring disused parts of the crypt back into use as well as dramatically improving accessibility to the whole

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

building and the welcome we can offer in much improved facilities. It will also enhance the opportunities to increase the income from letting our facilities to a range of community, amateur, charitable and commercial organisations. Fundraising continued throughout the year bringing the target within reach. The aim was to reopen the building in time to celebrate the 70[th] anniversary of the Festival of Britain. Due to the pandemic and lockdown a decision was taken to delay this by a year and reduce the scope of the project.

We also hosted the eighth Waterloo Festival, moving it entirely online. It was a great success, attracting around 1,700 people to a wide range of online events, including interviews, podcasts, reflections on Waterloo’s history, and creative projects.

We are pleased to support the work of various charities who use our buildings on a reduced or no-cost basis. These include Southbank Sinfonia, an orchestra offering young musicians the experience of playing professionally; Futures Theatre, a company creating interactive drama in schools to address societal issues, such as drug abuse and youth pregnancy; a counselling service for those with long-term alcohol dependency; a coffee morning and a community bingo evening. The pandemic caused many of these activities to be suspended but we hope that they will begin again soon.

The PCC is committed to enabling as many people as possible to worship at the churches and to be at the heart of our parish community of Waterloo. The PCC maintains an overview of worship throughout the parish and makes suggestions on how the services can involve many diverse groups that live, work and pass through within the Parish.

Particular attention is paid to ensuring that the services offered at the different churches complement each other and therefore enable as many people as possible to take part. Our services and worship put faith into practice through prayer and scripture, music and sacrament.

When planning the activities for the year, the incumbent and the PCC have considered the Charity Commission’s guidance on public benefit and the specific guidance to charities for the advancement of religion.

In particular, we try to enable ordinary people to live out their faith as part of our parish community through:

• Regular worship and prayer open to all: learning about the Gospel and developing their knowledge and trust in Jesus Christ;

• Provision of sacred spaces for personal prayer and contemplation;

• Provision of pastoral care for people living within the parish;

• The teaching of Christianity through sermons, courses and small groups;

• The provision of facilities for charitable organisations offering opportunities for learning and development;

• The promotion of Christianity through the staging of events and meetings;

• Promotion of the whole mission of the Church through the provision of activities for specific groups;

• Supporting other charities in the UK and overseas selected annually by the congregation.

To facilitate this work, it is crucial that we maintain the fabric of the two churches and ensure its fitness for the purposes of the wide variety community users.

Recognising our unique position in the neighbourhood, our annually-evaluated Mission Action Plan seeks to address neighbourhood as well as congregational need while reaching out to the wider London community, based on the Diocese’ “Five Marks of Mission” and St John’s 2016 vision statement, in the final year of its five-year life.

Work begun on developing new five-year vision to reflect the development and evolving focus of St John’s, adopting as the overarching purpose for the parish the new strap line “Here for You”. Extensive consultation with the congregation took place, including at the July 2020 APCM. Following a review of the findings, the PCC delegated responsibility to the Secretary and a Churchwarden to assimilate the feedback and to propose a new five-year vision, for approval and adoption by the PCC. After this, a new format five-year Mission Action Plan would be developed, commencing in 2021.

Despite Covid-19, it was good year for the churchyard, with senior community gardener Viv Williamson continuing to make a great impact on the efficient running and maintenance in liaison with Lambeth as well as through her Bridge at

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

Waterloo work with our Roots and Shoots and ex-St Mungo’s volunteers, all of whom have made progress under her mentorship. The day-to-day work in the churchyard had to be reduced, but it provided a great resource for people during their daily exercise in lockdown. Our vision for the churchyard as a key opportunity for mission is building on its promise among the wider user-group. We have received strong support from the local community.

3. Achievements and performance

St John’s with St Andrew’s continued to make progress in line with all our plans during 2020.

The design phases of ReIGNITE project continued. The Faculty required from the Diocese has now been granted for the whole of the works. The intervention of the Covid lockdown has caused the planned works to be put on hold for a start in 2021 and we made some significant savings by amending the design. But we are pleased that the simplified design does not reduce the operational capacity of the project. During the year fundraising work continued and has been well supported.

Worship, Prayer and Study

We made a swift adaptation to Covid-19, by moving our worship on to Zoom. We maintained the pattern of regular worship: a 9am morning prayer service and a Eucharist at 10:30 on Sundays, and daily morning prayer at 8:30. The services were well attended on Zoom, and once we were permitted to have worship in church again, we developed a hybrid way of working which worked well.

All are welcome to attend these regular services and we have welcomed many new people online – literally all over the world during the year. At the last annual meeting there were 116 parishioners on the combined Church Electoral Roll. Because of Covid-19 we were unable to carry out our regular count, but attendance at worship was maintained at a broadly similar or slightly increased level from the previous year. Attendance at Morning Prayer has increased by around 30%.

We have continued to take our aspiration to be a fully inclusive church seriously. We responded quickly to the Black Lives Matter movement, holding prayers and being part of the Deanery and nationwide actions. We also welcomed the publication of the Church of England’s Living in Love and Faith resources on identity, gender and sexual orientation, and plan to use the resources in 2021.

The services for Holy Week were all online. Again, these were open to all and are publicised via our website, individual household invitations and church magazines. Our Column Inches parish magazine also moved online, with a very positive reception: we continued to print copies for those who do not have access to the internet.

The total attending Christmas services including carols, in person and online, for congregation and community was approximately 200. The combined total Christmas Eve and Christmas Day attendance of adults and children was 90 at all the special services.

Deepening the spiritual life of the parish was a key focus during 2020. We continued to build our Rule of Life engagement, with over 30 people involved, and we also ran a Living in Love and Faith course in February and March 2021, attracting over 25 people.

We did not host any weddings or funerals during 2020.

As part of our mission to develop personal engagement in worship and community, groups continue to be responsible at Sunday Eucharist for welcome, offertory, collection (and subsequent counting) with others trained in lesson reading and intercessions.

Our relationship with Okusinza Church continues to be valued. Okusinza’s worship also moved online but as soon as permissible we were glad to welcome their worship back at St John’s.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

The teaching of Christianity takes place in all services via the use of sermons, readings and talks. In addition, the vicarage hosts ‘Face-to-Faith’ – also online during 2020/21

St John’s Development Project

2020 was known to be a critical year for the project, and the objectives set for the year have been met allowing the project to stay on course. As a result of the Covid-19 pandemic, the planned works were delayed until 2021, and we identified significant savings to the proposals by simplifying the design, without compromising the planned outputs. As a result of the changes and the delay, the decision was taken to go out to tender again, and work continued throughout 2020 to enable this to happen.

The fundraising moved into the public phase during the year as the halfway point was reached. There is an extensive and intensive programme of fundraising activity. This is involving application to trusts, discussions with the London Borough of Lambeth, community fundraising events, the generosity of members of the congregation, reallocation of one our funds, more appropriate use of our assets and discussions with our bank. It was also necessary for us to obtain confirmation that the existing grant offers would remain valid in the light of the delay and we are pleased that all our grant funders have indeed confirmed the continuation of their offers.

A long-term Business Plan has been developed with particular emphasis on quantifying and testing the realistic income assumption after the work is completed, as this will be essential to the sustainability of the project in the short and longer term.

The PCC continues to delegate the detail work to two Committees. The Design Committee which is overseeing the architects’ proposals and the Finance and Major Fundraising Committee which is overseeing the costs and fundraising.

Deanery Synod

Three members of the PCC sit on the Deanery Synod and this provides the PCC with an important link between the parish and the wider structures of the church.

Pastoral Care

The Parish is blessed with a Southwark Pastoral Auxiliary (SPA) who, along with the Clergy Team, visit those who are unable to attend church due to sickness or age and enable these people to take communion on a regular basis. During Covid-19, the worshipping community showed strong support, not least through the introduction of daily Coffee and Chat and an online pub. Our SPA was away on caring duties for most of the year, but we also instituted a WhatsApp group which provided much mutual support.

Environment and Social Justice

The Environment and Social Justice Committee carries responsibility for the parish’s wider mission; with a key objective of raising awareness within the congregation of the spread of our existing activities and encouraging participation where possible.

Please note that some of the actions and events mentioned below are sometimes overlaps or areas also covered by other PCC sub-committees, clergy or congregation members and their very own efforts:

PCC Outward Giving / Charity of the Month. Previously Outward Giving, with monthly charities nominated by the congregation and selected by the ESJ, provided a yearly calendar (from May 2019 to April 2020) for the ESJ’s focus and action in relevant areas of environment and social justice. Charities selected in the previous year and supported in 2020:

January: Global Poverty / Refugees - Core charity: USPG

February: Inclusion – Global - Mission to Seafarers, The Bible Society, Inclusive Church March: Poverty and Inclusion - Core charity: Bishop’s Lent Appeal

April: Environment - Operation Noah, ARC Amphibian and Reptile Conservation, Rewilding Britain

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

As a result of St John’s reduced income in 2020 (impact of lockdown and St John’s planned redevelopment) the budget for charitable giving was also diminished and consequently there were no outward giving nominations for 2020/21.

However, St John’s is still supporting our core charities in 2021: Christian Aid, USPG and the Bishops Lent Call. We also encourage members of our congregation to be generous in their own support for other good causes.

Maintaining links with Foodbank, Robes and other projects for the homeless

Due to lockdown and Covid-19 related restrictions, the Foodbank running every Wednesday in St John’s (crypt) had to close. Yet in May Giles set up a drop off for donations at St John’s (once the church building was able to reopen) on Wednesdays for Food Bank and helping Look Ahead , a new hotel project to provide safe shelter to people who have become homeless and lost their jobs due to the pandemic.

St John’s participated in the ‘Making a Star’ project to add a homemade star (made by volunteers) to each Foodbank parcel at Christmas.

We were glad to host guests for the Robes sleep-in in January – March. Sleeping Out Night for Robes in November took a different turn this year with an online event Sleep In to help those who Sleep Out (special contributions from Shanon, Mark, Trisha and Eileen).

Maintaining Links with Christian Aid. Jenny and Kate participated in fundraising events for Christian Aid: Christian Aid auction and picnic (raising £3,462).

Before lockdown in March, there was a regular Fair Trade and Zaytoum stall in church after the services, one Sunday a month.

Links with Citizens UK / Lambeth Citizens and other organizations. At St John’s we were aiming to have 25 people of the congregation to attend the London Citizens Mayoral Hustings on April 21, 2020 but the event was cancelled due to the pandemic

London Citizens Just Transition campaign - to ensure our local community has direct and meaningful input into the London Mayoral Election in 2021 and agenda, Nicola and Shanon conducted two 90-minute listening sessions in September.

Virtual Lobby with our MP - Part of the campaign by the Climate Coalition to lobby our MPs for a green recovery. Shanon and Giles organised a virtual lobby session in June with Florence Eshalomi, our MP, with members of St John’s and ESJ attending.

Other links: e.g. Extinction Rebellion – campaigners were offered shelter in St John’s crypt.

Faith for the Climate webinar in June on faith and a green recovery.

Faith and a Green Recovery - Thinking Global, Acting Local event hosted by Shanon (with Faith for the Climate) in July.

Participation in Mums for lungs poster campaign in July (Nicola)

Climate Sunday on October 4[th]

Clean Air Campaign workshops with Lambeth and anti-idling in Waterloo (Nicola)

Eco Church – St John’s currently holds a silver certificate. The application for a gold certificate for our church was put on hold due to the church building imminent redevelopment - it was agreed with Giles to apply instead when the church reopens after the building works.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

The ESJ Future Direction Jam. In November the ESJ committee had a consultation session on Zoom opened to anyone in the congregation interested in attending to discuss the future needs and priorities in terms of the environment and social justice in our community, especially at this unprecedented time. The outcome of the jam session is to define the ESJ plan of action for 2021.

Charitable Support

As well as its charitable giving, the PCC also decided to increase its payments to the Diocesan Parish Support Fund. In 2020, despite the pandemic, we were able to keep our pledge of £81,200 was paid (2019: £70,960). In 2020, £81,200 has again been pledged. Our ambition in future is to help the Diocese fund parishes that are less fortunate than ours.

Use of the Crypt - the PCC and Board of TBAW have an agreed policy of allowing organisations that support our Vision to occupy space in the Crypt on licence fees of 60% of the normal rates in Waterloo. All organisations contribute fully to the service charges.

Neighbourhood Audit

An audit working party was created by the PCC and reported regularly to both the PCC and its Enabling Committee, where the purpose and objectives have been co-designed. Work on the audit was suspended with the onset of the pandemic but we will pick this up again once the redevelopment is on site, so that we are fully informed of local needs and opportunities when St John’s reopens.

Use of Church Buildings

The PCC has responsibility for the two sites where the churches are situated.

St John the Evangelist: this consists of a large church and crypt. The church is normally open every day and is extensively used by local people and local, London-wide and national institutions such as the Southbank Sinfonia, Christian Aid and the Diocese of Southwark. The crypt normally provides a home for four arts organisations: Southbank Sinfonia, Futures Theatre Company, Bankside Keys and Prisoner Penfriends. As mentioned earlier, our St John’s Development Project will regenerate the whole building so that it is in a good state for at least the next 50 years.

St Andrew’s is used by numerous local, London-wide and national groups as well as being a worship space – for example, National Childbirth Trust, Young Vic Theatre, National Theatre, Pregnancy Yoga, Lambeth CRUSE bereavement services, Rainbows, Cubs, Beavers and Brownies.

The Bridge at Waterloo

The Bridge at Waterloo (TBAW) officially started trading in its own right in January 2019. TBAW’s first full financial accounts for the year ended 31 December 2019 show a small surplus.

The members of the company are the incumbent and two churchwardens ex officio.

TBAW continued its operations throughout Covid-19 despite a 60% decline in income from bookings. The furlough programme was extremely helpful for the finances of TBAW and we were pleased that all the tenants of our offices were able to continue to pay their rent. We were also able to bring back some of the staff to enable the projects to develop. A new relationship was developed with BigLocal Bermondsey, where its employment training programme “Here for Work” continued to produce good results.

We were successful in raising new funding for an innovative Covid-19 response programme ‘Waterloo Well’ which is working with the residents of local homelessness hostels and also with local young people to provide therapeutic, horticultural, arts and employment support.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

In 2019, St John’s provided a loan on call of £45,000 to help finance TBAW’s working capital. Initially, repayment was not expected for the foreseeable future. After Covid-19 struck, TBAW lost most of its income during the lockdown period. To help ensure TBAW remains a going concern, PCC resolved to convert the loan to a grant in April 2020.

4. Going Concern

The Church of course was impacted greatly by the lockdown restrictions made necessary by the Covid-19 pandemic, which broke out in early March 2020.

Each year it’s the PCC’s responsibility to state whether or not the annual accounts have been drawn up on a going concern basis (see the accounting policy note on page 22). Going concern is the assumption that an entity, in this case the PCC, has the resources (financial and other) needed to continue operating for the foreseeable future and, in particular, for at least 12 months from the date of approval by the PCC of these annual accounts. If the going concern principle did not apply then the accounts would be drawn up on an insolvent basis.

Clearly, as part of this year’s going concern review, the PCC has had to consider the likely impact of Covid1-9 pandemic on its ministry. It has concluded that the financial risks to that ministry have increased significantly as a result of the lockdown restrictions imposed by the Government and the closure of the church building and halls mandated by the central authority of the Church of England. As a result, income from hiring out the church halls has ceased and is not expected to return to anything like a normal level until 2022, as the church will only be open for a short time before closure for ReIGNITE work starts. The impact of the lockdown on the finances of our church family members, whose giving provides a substantial part our income, remains unclear but planned giving has held up remarkably well – a clear indication of the resilience and outstanding generosity of our congregation. The PCC has been able to maintain our Parish Support Fund pledge in 2020 and 2021, its largest single item of expenditure.

Against this background, the PCC has reviewed its financial forecast for 2021, including the value of its property and investment assets. This review indicates that it will incur a deficit in 2021 but that its cash reserves are more than adequate to absorb that deficit. Even so it has taken positive steps to reduce the potential impact by furloughing most employees and minimising other expenditure. Accordingly, it has concluded that it is appropriate to prepare the 2020 accounts on a going-concern basis and that it is not necessary to make any adjustment to these accounts as a result of the lockdown restrictions. The PCC will continue to keep both the short-term and longer-term impact under review and in particular, the 'degree of return to normality' will be actively monitored in the latter part of 2021, with a view to assessing the likely carryover into 2022 and the effect on the 2022 budget.

5. Financial Review

Total income on unrestricted funds was £412,984 (2019: £264,085) and is detailed in note 2. It should be noted that the 2020 figure includes legacies totalling £161,315 (2019: £nil). We are exceptionally grateful for this God-send. This includes property licence fee of 29.5% (2019: 29.5%) from The Bridge at Waterloo (TBAW), a registered charity. Letting of the church flat, the commercial offices and ground rents at St Andrew’s continue as income to the PCC.

Payments totalling £258,467 (2019: £207,550) were made on unrestricted general church activities including the Diocese’ Parish Support Fund, maintenance and staff, and are detailed in note 3. The gift of the loan of £45,000 to TBAW is included in the Missionary and charitable giving figure of £61,929 in the General fund.

Unrestricted general receipts exceeded payments by £154,517 (2019: £56,535). The PCC decided to reserve £6,000 (2019: £13,860) to charitable giving in line with previously agreed policies. If it hadn’t been for the legacies, the PCC would have recorded a small deficit – but it would have been sustainable. Our financial projections show larger deficit for 2021, given the closure for ReIGNITE; but then a strong recovery once the church is reopened in 2022.

Reserves of £13,751 (2019: £13,751) continue to be held for Quinquennial Maintenance Fund. As above, £6,000 was transferred to the designated Mission & Charities fund and £196,315 to the designated St John’s Development Fund - reflecting our own commitment to the Project - leaving a balance of £261,265 carried forward. The PCC resolved to designate the proceeds from the legacies to the Project.

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THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

Restricted funds continue to be used for St John’s Development Project, Waterloo Festival, and other specified activities and causes.

6. Reserves Policy

The PCC currently follows a policy of maintaining a balance on unrestricted funds of at least three months of its unrestricted payments to cover emergency situations that may arise from time to time, and should these funds drop below this level the PCC will normally take immediate steps to restore the unrestricted funds to three months of unrestricted expenditure. At 31 December 2020, the PCC had net free reserves of £77,027 (2019: £124,825) as follows:

Total reserves Less: designated funds Less: restricted funds Less: endowment funds Free reserves Free reserves requirement: 3 month’s budgeted routine expenditure	2020	2019 £ 1,441,008 (1,188,308 (48,347 (79,528	) ) )
	£
	1,666,602
	(1,381,949)
	(120,061)
	(87,565)
		124,825
	77,027
		68,567
	62,487

Our financial projections anticipate the level of free reserves to fall to around 2 months whilst the church is closed. However, the projections show that this is sustainable until the church reopens and income recovers and begins to grow. Nevertheless, this will be monitored very closely by the Enabling and Finance and Major Fundraising Committees and remedial action taken if necessary.

7. Investment Policy

7.1 General Funds

The PCC holds investments in local property to provide a regular rental income for the church. Amounts held over and above funds required for working capital are held in bank short term deposits.

7.2 Restricted Funds

Amounts held over and above funds required for working capital are held in bank short term deposits.

7.3 Endowment Fund

The endowment fund is invested in CBF investment fund shares and the objective is to provide a high level of income whilst maintaining the capital value. An application was made to the Charity Commission for permission to liquidate the fund and apply the proceeds to the St John’s Development Project. In April 2021, the Charity Commission concurred with the PCC resolution to do this. We’re pleased to say the way is clear for us to carry out our plans.

8. Plans for Future Periods

Following the completion of the damp-proofing works in 2019, the crypt is now drying out ahead of the start of the main works which were planned to start in summer 2020. Work on the detailed design work started tenders were sought before the Project was put on hold when Covid-19 struck. The renovation works are now planned to begin in July 2021. This will result in a considerable enhancement both for worship and for the practical access to and use of the building.

St John’s - the Festival Church of Great Britain - continues to host the Waterloo Festival. We were delighted with the success of the online Waterloo Festival in 2020 and are looking forward to the 70[th] anniversary of the Festival of Britain to be celebrated in 2021.

11

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Parochial Church Council For the year ended 31 December 2020

9. Responsibilities of Trustees for the Financial Statements

The PCC is responsible for preparing the report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Charity law in England and Wales requires the PCC to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the PCC and of the incoming resources and application of resources of the PCC for that period.

In preparing those financial statements, the PCC is required to:

• Select suitable accounting policies and apply them consistently;

• Observe the methods and principles of the Charities SORP;

• Make judgements and estimates that are reasonable and prudent;

• State whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements; and

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the activities of the PCC will continue.

The PCC is responsible for keeping adequate accounting records which disclose with reasonable accuracy at any time the financial position of the PCC and enables them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the governing document.

The PCC is also responsible for safeguarding the assets of the PCC and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the PCC and financial information included in the PCC website.

10. Approval

Approved by the Parochial Church Council on 19 April 2021 and signed on its behalf by:

Canon Giles Goddard Chair

19 April 2021

12

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Report of the Independent Examiner to the Parochial Church Council of Waterloo Parochial Church Council

I report on the accounts of the Parochial Church Council (PCC) for the year ended 31 December 2020 set out on pages 14 to 27.

Respective Responsibilities of the PCC and the Examiner

The PCC is responsible for the preparation of the accounts. The PCC considers that an audit is not required for this year under section 144 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The PCC’s gross income exceeds £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants In England and Wales.

It is my responsibility:

• to examine the accounts under section 145 of the 2011 Act,

• to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the 2011 Act, and

• to state whether particular matters have come to my attention.

Basis of this Report

My examination was carried out in accordance with general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view and the report is limited to those matters set out in the statement below.

Independent Examiner’s Statement

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the church as required by section 130 of the Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

John Helm ACA

17 Heathville Road London N19 3AL

19 April 2021

13

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Statement of Financial Activities For the year ended 31 December 2020

Note Income from: 2 Donations and legacies Charitable activities Other trading activities Investments Total Income Expenditure on: 3 Raising funds Charitable activities Total Expenditure Net gains on investments Net Income/(Expenditure) Transfers between funds Other recognised gains/(losses) Net movement in funds Total funds brought forward Total funds carried forward	Unrestricted Funds General 2020 £ Designated 2020 £ 305,965 - 323 - 56,179 - 50,517 - 412,984 0 - - 258,467 8,674 258,467 8,674 - - 154,517 (8,674) (202,315) 202,315 - - (47,798) 193,641 124,825 1,188,308 77,027 1,381,949	Unrestricted Funds General 2020 £ Designated 2020 £ 305,965 - 323 - 56,179 - 50,517 - 412,984 0 - - 258,467 8,674 258,467 8,674 - - 154,517 (8,674) (202,315) 202,315 - - (47,798) 193,641 124,825 1,188,308 77,027 1,381,949	Restricted Funds 2020 £ 358,920 8,000 7,626 293 374,839 12,512 290,613 303,125 - 71,714 - - 71,714 48,347 120,061	Endowment		Unrestr General 2019 £ 93,122 1,838 115,554 53,571	icted Funds Designated 2019 £ - - - - 0 - 22,662 22,662 - (22,662) 46,260 - 23,598 1,164,710 1,188,308	Restricted Funds 2019 £ 358,107 21,866 8,496 652 389,121 39,232 438,706 477,938 - (88,817) - - (88,817) 137,164 48,347	Endowment Funds 2019 £ - - - 2,274 2,274 - - 0 12,283 14,557 - - 14,557 64,971 79,528	Total 2019 £ 451,229 23,704 124,050 56,497
				Funds	Total
				2020	2020
				£	£
				-	664,885
				-	8,323
				-	63,805
				2,413	53,223
	412,984					264,085				655,480
				2,413	790,236
	- 258,467 258,467 - 154,517 (202,315) - (47,798) 124,825 77,027					5,691 201,859				44,923 663,227
				-	12,512
				-	557,754
						207,550				708,150
				0	570,266
						-				12,283
				5,624	5,624
						56,535				(40,387)
				8,037	225,594
						(46,260) -				- -
				-	-
				-	-
						10,275 114,550				(40,387) 1,481,395
				8,037	225,594
				79,528	1,441,008
						124,825				1,441,008
				87,565	1,666,602

14

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Balance sheet

As at 31 December 2020

Note FIXED ASSETS Tangible 4 Investments 5 CURRENT ASSETS Debtors 6 Short term deposits 7 Cash at bank and in hand CURRENT LIABILITIES Creditors - amounts falling due within one year 8 NET CURRENT ASSETS LONG TERM LIABILITES Creditors - amounts falling due after more than one year 9 NET ASSETS Financed by: Unrestricted Funds: 10 General Fund Designated Funds Restricted Funds 11 Endowment Funds 12 TOTAL FUNDS	Unrestricted Funds General Designated 2020 £ 2020 £ - 924 - 1,100,000 0 1,100,924 35,949 146,315 90,338 134,710 30,349 - 156,636 281,025 79,609 - 77,027 281,025 - - 77,027 1,381,949 77,027 - - 1,381,949 - - - - 77,027 1,381,949	Unrestricted Funds General Designated 2020 £ 2020 £ - 924 - 1,100,000 0 1,100,924 35,949 146,315 90,338 134,710 30,349 - 156,636 281,025 79,609 - 77,027 281,025 - - 77,027 1,381,949 77,027 - - 1,381,949 - - - - 77,027 1,381,949	Restricted Funds 2020 £ - - 0 - 110,085 21,276 131,361 11,300 120,061 - 120,061 - - 120,061 - 120,061	Endowment Funds 2020 £ - 87,565 87,565 - - - 0 - 0 - 87,565 - - - 87,565 87,565		Total 2019 £ 2,398 1,179,528
					Total
					2020
					£
					924
					1,187,565
	0 35,949 90,338 30,349					1,181,926 175,097 97,420 92,576
					1,188,489
					182,264
					335,133
					51,625
	156,636					365,093
					569,022
	79,609					106,011
					90,909
	77,027 -					259,082 2,700
					478,113
					-
	77,027					1,438,308
					1,666,602
	77,027 - - -	- 1,381,949 - - 1,381,949				124,825 1,188,308 48,347 79,528
					73,527
					1,381,949
					123,561
					87,565
	77,027					1,441,008
					1,666,602

The accounts were approved by the PCC on 19 April 2021 and signed on its behalf by:

Canon Giles Goddard PCC Chair

Pat Thomas PCC Secretary

The notes on pages 17-27 form part of these financial statements.

15

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Cash Flow Statement For the year ended 31 December 2020

Note Net cash flows from operating activities 13 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of investments Net cash provided by (used in) investing activities Cash flows from financing activities Repayments of borrowing Net cash used in financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents brought forward Cash and cash equivalents carried forward	Unrestricted Funds 2020 £ (14,293) 50,517 - 50,517 - 0 36,224 219,173 255,397	Restricted Funds 2020 £ 160,245	Endowment		Total 2019 £ (144,503	) )
			Funds	Total
			2020	2020
			£	£
			-	145,942
		293 -			56,497 -
			2,413	53,233
			(2,413)	(2,413)
		293			56,497
			0	50,820
		-			-
			-	-
		0	0	0	0 (88,006 278,002
		160,538 (29,177)
			0	196,762
			-	189,996
		131,361	0	386,758	189,996

16

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Basis of accounting

The financial statements have been prepared under the Charities Act 2011 and in accordance with the Charities Statement of Recommended Practice (the Charities SORP) and Financial Reporting Standard 102 (FRS 102). The financial statements are drawn up on the historical cost basis of accounting except for the revaluation of freehold land and buildings which are shown at market value.

The financial statements include all transactions, assets and liabilities for which the PCC is responsible in law. They do not include the accounts of church groups that owe an affiliation to another body or those that are informal gatherings of church members.

The PCC meets the definition of a public benefit entity under FRS 102.

Going Concern

There are no material uncertainties about the charity’s ability to continue as a going concern and accordingly the accounts have been drawn up on a going concern basis.

Income recognition

Voluntary income and donations (including legacies) are included when the PCC becomes entitled to, probably will receive, and can reliably measure the income. Income from the recovery of tax on gift aided donations is recorded in the period to which the relevant donation is received. Grant income is recognised on a receivable basis.

The income from trading activities includes rental income from the letting of church premises and freehold land and buildings which is accounted for when earned. It is shown gross, with the associated costs included in fundraising costs.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Expenditure is accrued as soon as a liability is considered probable and the amount can be measured reliably. The PCC is not registered for VAT so expenditure includes VAT.

Expenditure included in Raising Funds includes property maintenance costs.

Charitable expenditure includes those costs in fulfilling the PCC’s principal objects, as outlined in the Report of the PCC. These include grants payable, governance costs and an apportionment of support costs.

• Grants payable are payments made to third parties in furtherance of the PCC’s objects. In the case of an unconditional grant offer this is accrued once the recipient has been notified of the grant award. The notification gives the recipient a reasonable expectation that they will receive the grant. Grant awards that are subject to the recipient fulfilling performance conditions are only accrued when the recipient has been notified of the grant and any remaining unfulfilled condition attaching to that grant is outside of the control of the PCC.

• Governance costs comprise all costs involving the public accountability of the PCC and its compliance with regulation and good practice. These costs include costs related to the independent examination and legal fees.

The PCC contributes to certain employees' personal pension plans. These are defined contribution schemes, the assets of which are held separately from those of the charity. The cost in the accounts is the amount of contributions paid and payable during the year.

17

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

1. Accounting Policies (continued)

Tangible Fixed Assets

Consecrated Property and Moveable Church Furnishings

Consecrated land and benefice property such as the church building and vicarage is excluded from the accounts in accordance with s10 of the Charities Act 2011. Moveable church furnishings held by the vicar and churchwardens on special trust for the PCC and which require a faculty for disposal are inalienable property, listed in the church’s inventory, which can be inspected (at any reasonable time). They are capitalised at cost and depreciated over their useful economic life other than where insufficient cost information is available. In this case the item is not capitalised, but all items are included in the church’s inventory in any case.

Freehold Land & Buildings

Freehold land and buildings are stated at market value on a 5 yearly basis and the next valuation is due on 31 December 2022. No depreciation is provided on buildings as the currently estimated residual value of the properties (discounted for monetary inflation since their capitalisation) is not less than their carrying value and the remaining useful life of these assets currently exceeds 50 years, so that any depreciation charges would be immaterial. If the carrying value of the buildings looks greater than their current value on this basis, an impairment review would be carried out and any resultant loss included in expenditure for the year.

Other Fixtures, Fittings & Office Equipment

These are capitalised if they can be used for more than one year and cost at least £1,000. They are valued at cost or else, for gifts-in-kind, at a reasonable estimate of their open market value on receipt. Depreciation is calculated to write off fixed assets over their estimated useful lives as follows:

• Fixtures & Fittings 20 years

• • Sound System 5 years

• Office Equipment & Computers 3 years

Investments

Freehold land and buildings are stated at fair value. Quoted investments are stated at market value. Realised and unrealised gains and losses on investments are reflected through the Statement of Financial Activities.

Debtors

Debtors are included at the settlement amount due. Prepayments are valued at the amount prepaid.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of opening of the deposit.

Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation arising from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are recognised at their settlement amount.

Borrowings

The PCC has one category of borrowings - concessionary loans from members of the congregation (on which no interest is payable), which are recognised at the amount received.

Fund accounting

The funds held by the charity are either:

• Unrestricted funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

• Restricted funds - these are funds that can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

• Endowment funds - these are funds whose capital must be maintained.

18

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements

For the year ended 31 December 2020

2. Income

Donations and legacies Planned giving Open plate collections One-off Gift Aid gifts Donations and appeals Tax recoverable on Gift Aid Legacies Grants (see note below) Charitable Activities Parish events and activities (see note below) Parochial fees (weddings and funerals) (net) Other trading activities Licence fee income (TBAW) Church building lettings Fundraising events Investments Rent from buildings Bank interest Dividends	Unrestricted Funds General Designated 2020 £ 2020 £ 78,613 - 826 - 22,817 - 6,197 - 17,786 - 161,315 - 18,411 - 305,965 0 - - 323 - 323 0 33,807 - 22,372 - - - 56,179 0 50,275 - 242 - - - 50,517 0 412,984 0	Unrestricted Funds General Designated 2020 £ 2020 £ 78,613 - 826 - 22,817 - 6,197 - 17,786 - 161,315 - 18,411 - 305,965 0 - - 323 - 323 0 33,807 - 22,372 - - - 56,179 0 50,275 - 242 - - - 50,517 0 412,984 0	Restricted Funds 2020 £ - - - 78,918 19,442 4,541 256,019 358,920 8,000 - 8,000 - - 7,626 7,626 - 293 - 293 374,839		Endowment Funds 2020 £ - - - - - - - 0 - - 0 - - - 0 - - 2,413 2,413 2,413	Total	2019 £ 72,890 3,213 1,607 95,155 31,498 - 246,866
						2020
						£
						78,613
						826
						22,817
						85,115
						37,228
						165,856
						274,430
	305,965 - 323	0 - -					451,229 21,866 1,838
						664,885
						8,000
						323
	323 33,807 22,372 -	0 - - -					23,704 77,366 34,227 12,457
						8,323
						33,807
						22,372
						7,626
	56,179 50,275 242 -	0 - - -					124,050 53,070 1,153 2,274
						63,805
						50,275
						535
						2,413
	50,517	0					56,497
						53,223
	412,984	0					655,480
						790,236

The following central and local government grants were received during the year:

• Listed Places of Worship Grant Scheme: £44,768 (2019: £71,282)

• Job Retention Scheme: £13,358 (2019: £nil)

• Lambeth Council: £5,000 (2019: £nil)

Parish events and activities includes all of the income from the Waterloo Festival which includes donations, sponsorship, ticket sales and tax recoverable on Gift Aided donations.

3. Expenditure

3.1 Expenditure on Raising Funds

Costs of Waterloo Festival Direct costs of other fundraising events	Unrestricted Funds General Designated 2020 £ 2020 £ - - - - 0 0	Restricted Funds 2020 £ 5,013 7,499 12,512		Endowment Funds 2020 £ - - 0	Total	2019 £ 18,198 21,034
					2020
					£
					5,013
					7,499
						39,232
					12,512

19

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements

For the year ended 31 December 2020

3.2 Expenditure on Charitable Activities Unrestricted Funds General Designated 2020 £ 2020 £ Missionary and charitable giving Missions and churches - 2,800 Relief & development agencies - 2,400 Other charitable donations 61,929 2,000 61,929 7,200 Ministry Diocesan Parish Support Fund 81,200 - Parish mission expenses 3,737 - 84,937 0 Staff costs Gross salaries 44,153 - Employers National Insurance 3,681 - Employer’s Allowance (2,804) - Pension costs 2,266 - Staff training & welfare - 47,296 0 Church Life & Outreach Parish training and mission - - Upkeep of services 3,354 - 3,354 0 Administration Postage & stationery 696 - Office telephone & internet 2,582 - Photocopier & printing 914 - Computer & website 5,132 - Accountancy services 1,691 - Subscriptions 4,422 - Bank charges 897 - Depreciation - 1,474 Miscellaneous expenses 9,204 - 25,538 1,474 Church Property Costs Insurance 10,558 - Heat, light & water 16,161 - General maintenance (incl churchyard) 3,188 - Major repairs - - Cleaning 2,922 - Curate’s accommodation 664 - St Johns Development Project costs - - 33,493 0 Governance Costs Independent examiner fee 990 - Preparation of financial statements 930 - 1,920 0 258,467 8,674	3.2 Expenditure on Charitable Activities Unrestricted Funds General Designated 2020 £ 2020 £ Missionary and charitable giving Missions and churches - 2,800 Relief & development agencies - 2,400 Other charitable donations 61,929 2,000 61,929 7,200 Ministry Diocesan Parish Support Fund 81,200 - Parish mission expenses 3,737 - 84,937 0 Staff costs Gross salaries 44,153 - Employers National Insurance 3,681 - Employer’s Allowance (2,804) - Pension costs 2,266 - Staff training & welfare - 47,296 0 Church Life & Outreach Parish training and mission - - Upkeep of services 3,354 - 3,354 0 Administration Postage & stationery 696 - Office telephone & internet 2,582 - Photocopier & printing 914 - Computer & website 5,132 - Accountancy services 1,691 - Subscriptions 4,422 - Bank charges 897 - Depreciation - 1,474 Miscellaneous expenses 9,204 - 25,538 1,474 Church Property Costs Insurance 10,558 - Heat, light & water 16,161 - General maintenance (incl churchyard) 3,188 - Major repairs - - Cleaning 2,922 - Curate’s accommodation 664 - St Johns Development Project costs - - 33,493 0 Governance Costs Independent examiner fee 990 - Preparation of financial statements 930 - 1,920 0 258,467 8,674	Restricted Funds 2020 £ - 1,220 1,220 - - 0 22,043 - - - - 22,043 - - 0 - - - - - - - - - 0 - - - - - - 267,350 267,350 - - 0 290,613	Endowment Funds 2020 £ - - - 0 - - 0 - - - - - 0 - - 0 - - - - - - - - - 0 - - - - - - - 0 - - 0 0		Total 2019 £ 6,700 4,809 9,794 21,303 70,960 2,745 73,705 62,174 3,000 (3,000) 1,870 939 64,983 3,129 8,260 11,389 1,034 2,540 1,611 3,085 2,021 4,710 92 1,474 - 16,567 10,484 22,318 6,718 4,392 5,492 (7,283) 431,439 473,560 1,000 720 1,720 663,227
					Total 2019 £ 6,700 4,809 9,794
				Total
				2020
				£
				2,800
				2,400
				65,149
	7,200 - -				21,303 70,960 2,745
				70,349
				81,200
				3,737
	0 - - - - -				73,705 62,174 3,00 (3,000) 1,870 939
				84,937
				66,196
				3,681
				(2,804)
				2,266
	0 - -				64,983 3,129 8,260
				69,339
				-
				3,354
	0 - - - - - - - 1,474 -				11,389 1,034 2,540 1,611 3,085 2,021 4,710 92 1,474 -
				3,354
				696
				2,582
				914
				5,132
				1,691
				4,422
				897
				1,474
				9,204
	1,474 - - - - - - -				16,567 10,484 22,318 6,718 4,392 5,492 (7,283) 431,439
				27,012
				10,558
				16,161
				3,188
				-
				2,922
				664
				267,350
	0 - -				473,560 1,000 720
				300,843
				990
				930
	0				1,720
				1,920
	8,674				663,227
				557,754

20

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

3.2 Expenditure on Charitable Activities (continued)

Staff Costs

Staff costs are disclosed in the table above. During the year, the PCC employed 5 staff (2019: 5 staff). All staff employed received at least the London Living Wage. No employee received emoluments of over £60,000 during the year (2019: none).

4. Tangible Fixed Assets

Cost At 1 January 2020 Additions Disposals At 1 January and 31 December 2020 Depreciation At 1 January 2020 Charge for Year Disposals At 31 December 2020 Net Book Value At 31 December 2020 At 31 December 2019 5. Fixed Asset Investments Market value at 1 January Additions at cost (incl dividends reinvested) Disposals Revaluation gain/(loss) Market value at 31 December Investments are represented by: 21 Windmill House, Windmill Walk, London SE1 Theatre View, Short Street CBF investment fund shares Market value at 31 December	Freehold land & buildings Investments £ £ 1,100,000 79,528 - 2,413 - - - 5,624 1,100,000 87,565 300,000 - 800,000 - - 87,565 - 1,100,000 87,565	Fixtures,	Fixtures,
		fittings &
		equipment
			£
			16,941
			-
			-
			16,941
			14,543
			1,474
			-
			16,017
			924
			2,398
				2019 £ 1,164,971 2,274 - 12,283
			2020
			£
			1,179,528
			2,413
			-
			5,624
				1,179,528 300,000 800,000 79,528
		1,187,565
					300,000 800,000 79,528
			300,000
			800,000
			87,565
				1,179,528
		1,187,565

5. Fixed Asset Investments

21

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

5. Fixed Asset Investments (continued)

Freehold land and buildings consist of:

(1) Flat at 21 Windmill House, Windmill Walk, London SE1, which is an investment property held to generate rent and or/to house key Parish personnel, and is therefore not depreciated. It was revalued in 2012 on a “walk by” basis at £300,000.

(2) The office at Theatre View, Short Street. This is valued at £800,000, based on the current rent (reviewed in 2019 for five years) of £40,000 per annum with a gross yield of 5%.

We are advised that this basis of valuation is sufficiently transparent - so as not to incur full valuation fees.

Investments are held in respect of Trust T0074. The trust funds are held by the Diocese of Southwark as custodian trustee on behalf of the PCC.

6. Debtors

Prepayments Income tax recoverable Lettings receivable Grants receivable Legacy receivable Accrued income The Bridge at Waterloo The Bridge at Waterloo – loan Other debtors		2020		2019 £ 1,652 8,819 13,703 21,186 - 67,638 14,129 45,000 2,970
		£
		1,368
		7,736
		2,333
		10,374
		146,315
		12,438
		-
		-
		1,700
				175,097
		182,264

The loan to the Bridge at Waterloo is interest free with no specific date for repayment. It was converted to a grant in April 2020.

7. Short Term Deposits

CCLA 637006001D_(Unit Holding, St Andrew’s) CCLA 637006002D(PCC General) CCLA 637006006D(Project Account, St John’s)_		2020		2019 £ 10,121 49,896 37,403
		£
		-
		90,338
		244,795
				97,420
		335,133

8. Creditors - Amounts Falling Due Within One Year

Trade creditors Accruals The Bridge at Waterloo Rental deposits held Loans payable (see note 10 below)		2020		2019 £ 61,437 16,486 - 16,788 11,300
		£
		35,890
		5,167
		21,721
		16,831
		11,300
				106,011
		90,909

22

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

9. Creditors - Amounts Falling Due After More Than One Year

9. Creditors - Amounts Falling Due After More Than One Year
Loans payable		2020		2019 £ 2,700
		£
		-

Loans have been made by members of the church congregation to help finance the costs of the St John’s Development Project. They are interest free and are repayable over five years to 2020.

10. Unrestricted Funds

10a Current year Unrestricted: General Fund Designated Funds: Tangible Fixed Assets Fund Investments – Freehold Land & Buildings Fund Quinquennial Maintenance Fund Mission & Charities St Johns Development Fund Robes project 10b Prior year Unrestricted: General Fund Designated Funds: Tangible Fixed Assets Fund Investments – Freehold Land & Buildings Fund Quinquennial Maintenance Fund Mission & Charities St Johns Development Fund Robes project	At 1 January 2020 As restated £ 124,825 2,398 1,100,000 13,751 6,009 64,950 1,200	At 1 January 2020 As restated £ 124,825 2,398 1,100,000 13,751 6,009 64,950 1,200		Income £ 412,984 - - - - - -	Expenditure £ (258,467) (1,474) - - (7,200) - -	Gains/ (losses) £ Transfers £ - (202,315) - - - - - - - 6,000 - 196,315 - -	Gains/ (losses) £ Transfers £ - (202,315) - - - - - - - 6,000 - 196,315 - -	At 31	At 31
								December
									2020
									£
									77,027
									924
									1,100,000
									13,751
									4,809
									261,265
									1,200
		1,188,308		0	(8,674)	0	202,315		1,381,949
		1,313,133		412,984	(267,141)	0	0		1,458,976
				Income £ 264,085 - - - - - -	Expenditure £ (207,550) (1,474) - (1,158) (20,030) - -	Gains/ (losses) £ Transfers £ - (46,260) - - - - - - - 13,860 - 31,200 - 1,200
	At 1 January 2019 As restated £ 114,550 3,872 1,100,000 14,909 12,179 33,750 0								At 31
								December
									2019
									£
									124,825
									2,398
									1,100,000
									13,751
									6,009
									64,950
									1,200
		1,164,710		0	(22,662)	0	46,260		1,188,308
		1,279,260		264,085	(230,212)	0	0		1,313,133

23

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

10. Unrestricted Funds (continued)

The descriptions of the main funds are as follows:

• Tangible Fixed Assets Fund – The balance consists of the net book value of office, sound and computer equipment.

• Investments – Freehold Land and Buildings – the PCC decided to set up this fund to show the assets which are held to generate an income. The major two items in this Fund are the flat in Windmill House (current value £300,000) and the office at Theatre View, Short Street (current value £800,000).

• Quinquennial Maintenance Fund – created to set aside funds to enable repair of the church buildings in accordance with the Quinquennial Report received in 2019.

• Mission & Charities Fund – the PCC decided that it should aim to give away 5% of its disposable income and this fund has been set up for this purpose.

• St John’s Development Fund – This designated fund reflects St John’s commitment to the development of our building and community. Last year, the PCC has approved £15,000 a year for 2020. This was reviewed when the 2020 budget was set and £2,500 a month was approved from October 2020 to June 2020 inclusive, when the main works were set to begin. The fund will be used to finance work which isn’t immediately covered by grant income. If funds remain when the Project is complete and paid for, any remaining funds will be released back to general fund unless needed elsewhere.

11. Restricted Funds

11a Current year

The St Johns Development Fund: Main Fund Lady Chapel Fund Accessibility Fund Waterloo Festival Flower Fund Christmas Lunch Robes Project Lent Appeal Foodbank Belfrey fund Harvest/Manna Society		At 1 January 2020 £ 5,340 30,000 7,376 3,668 573 432 570 0 150 238 0	Incoming Resources £ Resources Expended £ 357,509 (292,930) - - - - 8,000 (8,513) 829 (235) - - 7,075 (11) 220 (220) 206 (216) - - 1,000 (1,000)	Incoming Resources £ Resources Expended £ 357,509 (292,930) - - - - 8,000 (8,513) 829 (235) - - 7,075 (11) 220 (220) 206 (216) - - 1,000 (1,000)	Incoming Resources £ Resources Expended £ 357,509 (292,930) - - - - 8,000 (8,513) 829 (235) - - 7,075 (11) 220 (220) 206 (216) - - 1,000 (1,000)	Gains/ (losses) £ Transfers £ - - - - - - - - - - - - - - - - - - - - - -	Gains/ (losses) £ Transfers £ - - - - - - - - - - - - - - - - - - - - - -	At 31	At 31
								December
									2020
									£
									69,919
									30,000
									7,376
									3,155
									1167
									432
									7,634
									0
									140
									238
									0
		48,347		374,839	(303,125)	0	0		120,061

24

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

11. Restricted Funds (continued)

11b Prior year The St Johns Development Fund: Main Fund Lady Chapel Fund Accessibility Fund Waterloo Festival Flower Fund Christmas Lunch Churchyard Robes project Lent Appeal Royal British Legion (poppy appeal) Foodbank Salary sponsorship Christian Aid Ghana Appeal Belfrey fund Woodland Trust		At 1 January 2019 £ 97,406 30,000 7,376 0 395 432 89 588 0 32 588 0 20 238 0	Incoming Resources £ Resources Expended £ 360,408 (452,474) - - - - 21,866 (18,198) 695 (517) - - - (89) 75 (93) 180 (180) - (32) 13 (451) 5,000 (5,000) 684 (704) - - 200 (200)	Incoming Resources £ Resources Expended £ 360,408 (452,474) - - - - 21,866 (18,198) 695 (517) - - - (89) 75 (93) 180 (180) - (32) 13 (451) 5,000 (5,000) 684 (704) - - 200 (200)	Incoming Resources £ Resources Expended £ 360,408 (452,474) - - - - 21,866 (18,198) 695 (517) - - - (89) 75 (93) 180 (180) - (32) 13 (451) 5,000 (5,000) 684 (704) - - 200 (200)	Gains/ (losses) £ Transfers £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	Gains/ (losses) £ Transfers £ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	At 31	At 31
								December
									2019
									£
									5,340
									30,000
									7,376
									3,668
									573
									432
									0
									570
									0
									0
									150
									0
									238
									0
									0
		137,164		389,121	(477,938)	0	0		48,347

The descriptions of the main funds are as follows:

• The St Johns Development Fund. A fund set up to enable the development of St John’s Church as a place of engagement and innovation in the arts and to make explicit connections between art and faith, particularly for young people in giving them employability skills. The fund is currently in three parts:

• Main Fund

• Lady Chapel Fund – a fund set up for the refurbishment of the Lady Chapel in memory of the late Revd Alison Warner.

• • Accessibility Fund – this fund holds a specific gift towards improving the accessibility of the Crypt.

• Waterloo Festival – restricted donations received for the Waterloo Festival.

• Christmas Lunch – fund created to provide a Christmas Lunch for the wider community of St John’s, especially those in need and those alone at Christmas.

• Robes Project – funds received to support our contribution to hosting homeless guests throughout the winter

• Churchyard – funds received to fund the works to the churchyard at St John’s. From May 2020, this was transferred to TBAW which is now responsible for this work as part of its mission to provide employability skills.

25

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

12. Endowment Funds

12a Current year Trust Fund T0074 12b Prior year Trust Fund T0074		At 1 January 2020 £ 79,528		Income £ Expenditure £ 2,413 -	Income £ Expenditure £ 2,413 -	Gains/ (losses) £ Transfers £ 5,624 -	Gains/ (losses) £ Transfers £ 5,624 -	At 31	At 31
								December
									2020
									£
									87,565
		At 1 January 2019 £ 64,971		Income £ Expenditure £ 2,274 -		Gains/ (losses) £ Transfers £ 12,283 -
		At 1 January 2019 £ 64,971							At 31
								December
									2019
									£
									79,528

The endowment funds originate from the previous parish of St Thomas, Lambeth, which was completely bombed out during World War II and became absorbed by St John’s. There were two funds T0074 & T0075: T0074 indicates that it was the St Thomas Curatage and Endowment Fund, and T0075 refers to St Thomas General Purposes Endowment Fund. There is little to indicate, in either case, whether or not the funds are expendable. During 2019 T0075 was transferred to T0074 to save costs and hopefully improve income. The funds are managed by the Diocese of Southwark as custodian trustee on behalf of the PCC.

Of the original capital sum of about £55,000, the Church borrowed £21,167 in 1977 and a further £5,842 in 2007. Any income and gains generated from the funds is used to replace the capital borrowed.

During 2020 the PCC, subject to permission being granted by the Charity Commission, passed a resolution to liquidate the endowment and transfer the assets to the St John’s redevelopment fund. On 2020 April 2021, they day after these accounts were approved by PCC, the Charity Commission concurred with this resolution. We are pleased that we can now proceed with this plan in 2021.

13. Reconciliation of net income to net cash flow from operating activities

Net movement in funds for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges (Gains)/losses on investments Dividends and interest from investments (Increase)/decrease in stocks (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by (used in) operating activities	Unrestricted Funds 2020 £ 145,843 1,474 - (50,517) - (95,991) (15,102) (14,293)	Restricted Funds 2020 £ 71,714 - - (293) - 88,824 - 160,245	Endowment		Total 2019 £ (40,387 1,474 (14,557 (56,497 746 (88,138 52,856	) ) ) ) )
			Funds	Total
			2020	2020
			£	£
			8,037	225,594
			-	1,474
			(5,624)	(5,624)
			(2,413)	(53,233)
			-	-
			-	(7,167)
			-	(15,102)
			0	145,942	(144,503

26

THE PAROCHIAL CHURCH COUNCIL OF THE ECCLESIASTICAL PARISH OF WATERLOO (St John the Evangelist with St Andrew)

Notes to the Financial Statements For the year ended 31 December 2020

14. Related Party Transactions and Balances

The Revd Canon Giles Goddard and Belinda Taylor, both members of the PCC, also served as trustees of The Bridge at Waterloo (“TBAW”) (charity registered no. 1167768) during the year. Whilst the PCC has overall responsibility for the two church buildings, St John the Evangelist and St Andrew, TBAW manages the maintenance of both church buildings and all lettings. Income and expenditure relating to the use of St John’s church (as opposed to the crypt) is allocated to the PCC. All other income and expenditure relating to use by external parties of all other parts of the two buildings is retained/incurred by TBAW in exchange for a licence fee payable to the PCC. During the year a licence fee of £33,807 (2019 - £77,366) was payable to the PCC. In addition, the PCC recharged various expenditures incurred on behalf of TBAW during the year and, during 2020, an interest free loan of £45,000 made by the PCC to TBAW in 2019 was converted to a grant in April 2020. The net amount due from the PCC to TBAW at 31[st] December 2020 resulting from these transactions was £21,721 (2019: amount due to the PCC from TBAW: £14,129).

One member (2019: one) of the PCC, together with their partner, have made interest free loans totalling £10,000 (2019: £10,000) to the church in respect of the St Johns Development Project.

Members of the PCC gave a total of £32,155 (2019: £15,113) in unrestricted offerings and donations during the year

27